Casa Systems Inc (CASA) 10-Q Quarterly Report Fri Apr 30 2021

Casa Systems, Inc. (Nasdaq: CASA), a leading provider of physical and cloud-native infrastructure technology solutions for mobile, cable and fixed networks, today announced its financial results for its first quarter ended March 31, 2021.

First Quarter 2021 Financial & Operational Highlights

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Revenue of $104.3 million

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Gross margin of 53.7%

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GAAP net income of $5.7 million

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Non-GAAP net income of $9.4 million

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GAAP net income per fully diluted share of $0.06

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Non-GAAP net income per fully diluted share of $0.11

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Adjusted EBITDA of $20.2 million

“Our strong financial performance in the first quarter of 2021 is indicative of our ability to grow our business by delivering innovative solutions across our suite of product offerings to our customers,” said Jerry Guo, Casa Systems' President and CEO. "Our revenue grew by 25% year-over-year and, for the third consecutive quarter, our wireless and fixed-telco products accounted for the majority of our quarterly revenues. Additionally, with multiple new purchase orders in the quarter for our 4G and 5G products and for our DAA and virtual CCAP solutions, we continue to take market share with our strategic growth products.”

Scott Bruckner, Casa Systems' CFO, added, "The first quarter of 2021 was another solid quarter for Casa. We leveraged our efficient cost structure to deliver significant improvements in our GAAP and non-GAAP operating margins and our adjusted EBITDA, which increased by 452% relative to the first quarter of 2020. Additionally, we enhanced our liquidity with an 18.9% increase in our working capital. This gives us a strong financial foundation to support our double-digit revenue growth.”

To supplement our financial results presented in accordance with Generally Accepted Accounting Principles (“GAAP”), we are presenting non-GAAP financial measures in this press release. A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading Non-GAAP Financial Measures.

Financial Outlook

For the fiscal year 2021, we expect:

The following information was filed by Casa Systems Inc (CASA) on Thursday, April 29, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Casa Systems Inc's 10-Q Quarterly Report:

Financial - Earnings Highlight
The gross margin increase was due to product mix, with sales of software and other higher gross margin products comprising a higher percentage of total revenue in the three months ended March 31, 2021 as compared to the three months ended March 31, 2020.

Revenue - Product Highlight
Our future capital requirements may vary materially from those currently planned and will depend on many factors, including our rate of revenue growth, the timing and extent of spending on research and development efforts and other business initiatives, purchases of capital equipment to support our growth, the expansion of sales and marketing activities, expansion of our business through acquisitions or our investments in complementary products, technologies or businesses, the use of working capital to purchase additional inventory, the timing of new product introductions, market acceptance of our products and overall economic conditions.
Financial - Debt Highlight
In addition, we are required to make mandatory prepayments under the facilities with respect to (i) 100% of the net cash proceeds from certain asset dispositions (including casualty and condemnation events) by us or certain of our subsidiaries, subject to certain exceptions and reinvestment provisions, (ii) 100% of the net cash proceeds from the issuance or incurrence of any additional debt by us or certain of our subsidiaries, subject to certain exceptions, and (iii) 50% of our excess cash flow, as defined in the credit agreement, subject to reduction upon our achievement of specified performance targets.
Financial - Expense Highlight
The decrease in selling, general and administrative expense was further driven by a decrease of $1.1 million in professional services due to a reduction in audit and tax consulting fees, a $0.4 million decrease in trade show expenses due to COVID-19 and a $0.8 million decrease in depreciation expense as assets that became fully depreciated were not replaced.
Financial - Earnings Highlight
Borrowings under the facilities bear interest at a floating rate, which can be either a Eurodollar rate plus an applicable margin or, at our option, a base rate (defined as the highest of (x) the JPMorgan Chase, N.A. prime rate, (y) the federal funds effective rate, plus one-half percent (0.50%) per annum and (z) a one-month Eurodollar rate plus 1.00% per annum) plus an applicable margin.
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We expect cash flows from...Read more
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Similarly, our supply chain and...Read more
Financial - Expense
Voluntary prepayments of principal amounts...Read more
Financial - Expense
We have the right to...Read more
Revenue - Product
The increase in service revenue...Read more
Other - Other
The term loan facility contains...Read more
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Because the financial covenant under...Read more
Other - Other
In addition, our investing activities...Read more
Financial - Expense
Additionally, we saw decreases in...Read more
Revenue - Product
27 The increase in product...Read more
Financial - Earnings
The applicable margin for borrowings...Read more
Other - Other
As of March 31, 2021...Read more
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The term loan facility is...Read more
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Thus, the ultimate extent of...Read more
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To date, while the increased...Read more
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The remaining unremitted earnings of...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Casa Systems Inc provided additional information to their SEC Filing as exhibits

Exhibit 10.1: Material Contract

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: CASA
CIK: 1333835
Form Type: 10-Q Quarterly Report
Accession Number: 0001564590-21-022241
Submitted to the SEC: Fri Apr 30 2021 8:57:49 AM EST
Accepted by the SEC: Fri Apr 30 2021
Period: Wednesday, March 31, 2021
Industry: Radio And Tv Broadcasting And Communications Equipment